Tesla CEO Elon Musk has discussed high inflation and its effects on his companies. Starting Sunday evening, he tweeted a series of tweets starting with the first. He said, “What are your thoughts about the probable inflation rate over next few years?” He mentioned that the two companies he owns, Tesla and SpaceX, have experienced the effects of inflation pressure. Musk also said that this had become a trend for several other companies.
He cited a Financial Times report from earlier this month. It stated that global commodity prices are on course for the largest weekly gain in more than 50 years, with Europe’s natural gas prices setting a new high.
An analyst of JPMorgan, Dominic O’Kane, was quoted in the report, “Events in Russia and Ukraine are unleashing exceptional commodity price moves, which could have structural implications on long term supply… but we also believe there are credible threats of demand destruction as commodity prices melt-up.”
Responses to Musk:
In response to Musk’s tweets of inflation. The founder of Orcam Group, Cullen Roche, said, “The probability of 10% + inflation is extremely high for much of 2022. Interestingly, this also increases the risk of deflation in 2023 & 2024 as it increases the risk of the Fed making a policy mistake and/or prices corrected by crashing.”
Michael Saylor was among the people who replied to Musk’s tweet. He said, “It is not entirely unpredictable that you would reach that conclusion.” Musk answered, saying, “It is generally better to win physical things like a home or stock in companies you think make good products than dollars when inflation is high.”
He made sure to specify, “I still own & won’t sell my bitcoin, Ethereum, or doge.”
On Monday, Musk followed up with his tweets, challenging Vladimir Putin. He tweeted, “stakes are Ukraine” an hour later, he went on. This time he asked the Kremlin, “Do you agree to this fight?”